Gerdau S.A. (ADR) (NYSE:GGB)

The Company focuses on the decentralized production of long steel using electric arc furnace mini-mills and integrated mills with blast furnaces and continuous casting technology being used in both processes.

Don't be fooled by Brazil. This is a Marxist run country, and the day of reckoning has yet to arrive. Dilma's first term has been extended by the electorate, and Brazilians will be dealing with more than a collapse of their national soccer team. Brazil's only "promise" of the future is more of the same, where national resources can't hide the fact that about 90% of roads are covered in mud.

Brazil is gearing up to host both the World Cup and the Olympics, that means massive investments in new facilities as well as general infrastructure. I expect steady increasing rev's for the next 4 years.

Gerdau SA is a Brazil-based producer of long rolled steel. Gerdau operates steel mills that produce steel by direct iron-ore reduction in blast furnaces and in electric arc furnaces. In Brazil, it operates blast furnace steel mills, including its mill, Gerdau Acominas, an integrated steel mill located in Ouro Branco in the state of Minas Gerais. Its main customers are the industries and companies connected to the civil construction and the farming and livestock sectors. As of December 31, 2009, the Company had a total of 137 steel units globally, including distribution units, joint ventures and associated companies. The Company operates in Brazil, Argentina, Chile, Colombia, Guatemala, Mexico, Peru, Dominican Republic, Uruguay, Venezuela, the United States, Canada, Spain and India. Its subsidiaries include Gerdau GTL Spain SL, Gerdau Steel North America Inc, Gerdau Steel Inc and Axol SA, among others.

One of the more profitable companies in the Iron and Steel industry with a net margin of 3.78%. Revenue is increasing. 46.66% increase in earnings. Company has improved earnings per share by 46.7% in the most recent quarter compared to the same quarter a year ago. Stock price has surged by 177% and I see no reason why this should not continue.